Carisma’s second workforce reduction this year likely leaves the company with 44 full-time employees as turns its focus to developing therapies for fibrosis, oncology and autoimmune diseases.
As part of a strategic restructuring that includes reprioritizing its pipeline to focus on fibrosis, oncology and autoimmune disease therapies, Carisma Therapeutics will lay off 34% of its employees, the Philadelphia-based biopharma announced Dec. 9. The cuts includes 23 full-time employees, including three executives and research and development staff, according to a Dec. 9 SEC filing.
Carisma noted it expects to substantially complete the latest workforce reduction by the end of the first quarter of 2025. The three affected executives—Richard Morris, CEO; Eric Siegel, general counsel; and Terry Shields, senior vice president of human resources—will exit Dec. 31.
The company also underwent a workforce reduction earlier this year. In April, Carisma announced it would cut staff by about 37% during the second quarter. According to an April 1 SEC filing, the company had 107 full-time employees as of Dec. 31. This would likely leave Carisma with 44 full-time employees once the latest cuts are complete.
In addition to its workforce reduction, Carisma’s strategic restructuring includes ending development of CT-0525, a gene-modified autologous chimeric antigen receptor-monocyte (CAR-M) cellular therapy intended to treat solid tumors that overexpress human epidermal growth factor receptor 2 (HER2) metastasis. The company had completed patient enrollment of the Phase I clinical trial of CT-0525 but won’t enroll patients in the previously planned third cohort of the study.
In its Dec. 9 announcement, Carisma said it based the decision to discontinue development on an assessment of the anti-HER2 treatment competitive landscape, including the impact of recently approved therapies on HER2 antigen loss/downregulation. The effects on the future development strategy of any anti-HER2 treatment were also a factor.
Carisma will now focus its resources on advancing its macrophage engineering platform for the development of fibrosis, oncology and autoimmune disease therapies. Its initial fibrosis program is focused on addressing liver fibrosis, and the company plans to nominate a development candidate in the first quarter of 2025.
Meanwhile, Carisma continues collaborating with Moderna on its oncology and autoimmune programs. In oncology, the company is working with Moderna to advance multiple programs using a CAR-M plus mRNA/liquid nanoparticles. The lead candidate is an anti-glypican 3 CAR-M therapy that the company in its announcement noted has demonstrated potential for a scalable, patient-friendly approach to transform solid tumor therapy. Carisma and Moderna also have two CAR-M research programs for the treatment of autoimmune diseases associated with two distinct targets where there’s significant unmet medical need.
In the Dec. 9 announcement, Steven Kelly, president and CEO of Carisma, said the strategic restructuring should streamline operations and reduce operating expenses over time. The company expects to incur about $2.7 million in connection with the workforce reduction, mostly consisting of one-time employee termination benefits.
In a Nov. 7 SEC filing, Carisma noted it had an accumulated deficit of $287.9 million as of Sept. 30 and that it expected to incur additional losses “until such time, if ever” that it can generate significant sales from product candidates in development. The biopharma also stated it expected its cash and cash equivalents of $26.9 million as of Sept. 30 to sustain planned operations into the third quarter of 2025.
